HC Deb 12 March 1979 vol 964 cc11-2
7. Mr. Litterick

asked the Secretary of State for Trade what reply has been made to the representations made to the EEC by his Department on behalf of the British metal fastener industry about the dumping of steel by certain European steel producers.

Mr. Meacher

None as yet. The Commission requires detailed prima facie evidence of price breaches. This is hard to come by, but the industry is excepted to assemble this evidence soon.

Mr. Litterick

I am sure that my hon. Friend will recognise that that is a disappointing answer. Will he take on board that it is now four months since representatives of the British metal fastener industry came to Westminster and explained in detail to hon. Members on both sides of the House what was being done by European manufacturers of metal fasteners with the aid of dumped steel manufactured by Western European—that is, Common Market—steel manufacturers?

Mr. Meacher

I appreciate the long time lag in this matter. There is a significant issue. The real problem is that the steel used in the production of wire rod from which metal fasteners are made is not subject to the Davignon mandatory minimum prices and the wire rod itself is subject only to guidance prices which are not legally enforceable. The only provision which is possible in these circumstances is to tighten up the guidance prices for wire rod, and this means, in particular, providing more precise definition of the guidance prices for various sizes and specifications of material, whereas at present there is only one guidance price which is too crude. It is this which the industry is pressing for, and we are strongly supporting it.

Mr. John Ellis

Does my hon. Friend realise that assurances have been given from the Dispatch Box that, all in all, the Davignon agreement was working well but that it now appears that there are whole areas of steel, special steels and other steels, to which Davignon does not apply and there do not appear to be any satisfactory arrangements at all? Will my hon. Friend arrange for a document to be circulated to interested Members or for something to be put in the Library showing the real facts and figures, showing where Davignon applies, where it does not apply, what dumping of steel is going on from the Common Market and what dumping is going on from outside the Common Market, so that we may realise where we are?

Mr. Meacher

I shall be only too pleased to try to provide information setting out the position not only under the Treaty of Rome but under the Treaty of Paris. The problem is that Davignon measures apply only to ECSC-Treaty of Paris goods, whereas metal fasteners are covered by the Treaty of Rome, which does not allow the Commission to recommend or fix prices. That is the basic problem with which we are saddled. But I shall certainly try to give my hon. Friend and others the necessary information.